Michigan’s status as a core online casino state and a growing online sports betting market paid handsome dividends in 2024.
The Michigan Gaming Control Board (MGCB) announced that in-state casino, iGaming and sports betting raised more than half a billion dollars last year for community and responsible gaming initiatives.
A combination of casino wagering taxes, online gaming taxes and other gaming-related revenue generated $501.4 million for the state’s School Aid Fund, which provides additional funds for Michigan K-12 public classroom education. More than 77% of that total ($388.5 million) came from online casino taxes, $100.5 million came from retail casinos and retail sportsbooks, $12.9 million was generated by online sports betting and just under $300,000 came from fantasy contests.
In addition to the $501.4 million dedicated to education, smaller amounts totaling around $14.5 million were also contributed to initiatives supporting in-state responsible gaming, public safety workers and agricultural and equine sectors.
“As we look back on another successful year, I am proud of the significant impact the Michigan Gaming Control Board continues to have on our state and its residents,” said MGCB Executive Director Henry Williams. “From supporting education and first responders to tackling illegal gambling, the MGCB remains steadfast in its mission to protect consumers and enhance the public good.
The MGCB release came shortly after the board had reported that the state set new monthly records in November for sports betting handle, online sports betting handle and online casino revenue.
Tax hike proposal meets pushback
If a couple of state senators got their way, the state’s tax takings would be slightly higher.
A pair of bills introduced in the Michigan Senate by Sen. Sam Singh and Sen. Jeremy Moss just before the end of the year proposed small increases to online casino and online sports betting taxes. SB 1193 would raise the flat online sports wagering tax rate by 0.1% to 8.5%, while SB 1194 would add 1% on to each of the rates on the sliding tax scale for online casino gaming.
Those proposals received indirect pushback from Sports Betting Alliance (SBA) members FanDuel, DraftKings and BetMGM, who all told SBC Americas that they sent out emails to users in the Wolverine State to ask them to oppose the legislation.
They bills were not acted on before the end of 2024 and would need to be reintroduced in order to carry over to the new legislative session.
MGCB touts success in forcing out bad actors
Meanwhile, in the MGCB’S year-end release, it also patted itself on the back for its efforts in shutting down unlicensed gaming operators in the state.
Noting it made “significant strides in addressing illegal gambling and promoting regulatory integrity,” the board said that acting on tips from citizens, it issued six cease-and-desist letters to such operators in 2024.
The agency added that the national recognition it received for these efforts “has made Michigan a model for other states seeking advice and best practices in regulatory enforcement.”
The MGCB said Michigan was the first state to issue a cease-and-desist letter to Bovada before several other state regulators followed suit. It sent similar enforcement correspondence to VGW, One Country, Papaya Gaming, and Ace23 and Ace Per Head.
